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Restructuring and Related Charges and Asset Impairment Charges | 12 Months Ended
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Jun. 30, 2016
Restructuring Charges [Abstract] |
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES Restructuring and Related Charges Phase 1 We implemented restructuring actions in conjunction with our Phase 1 restructuring program to achieve synergies across Kennametal as a result of the TMB acquisition by consolidating operations among both organizations, reducing administrative overhead and leveraging the supply chain. These restructuring actions were substantially completed in fiscal 2016 and were mostly cash expenditures. Total restructuring and related charges since inception of $59.3 million have been recorded for these Phase 1 programs through June 30, 2016: $30.7 million in Industrial, $26.2 million in Infrastructure, and $2.4 million in Corporate. Ongoing restructuring programs We are currently implementing restructuring actions to streamline the Company's cost structure. These initiatives are expected to improve the alignment of our cost structure with the current operating environment through rationalization and consolidation of certain manufacturing facilities and through headcount reductions; enhancement of operational efficiencies through an enterprise-wide cost reduction program; and other employment and cost reduction programs. These restructuring actions are expected to be completed by December of fiscal 2019 and are anticipated to be mostly cash expenditures. The total pre-tax charges for these programs are expected to be in the range of $105 million to $125 million, which is expected to be approximately 65 percent Industrial and 35 percent Infrastructure. Total restructuring and related charges since inception of $71.4 million have been recorded for these programs through June 30, 2016: $41.2 million in Industrial, $23.3 million in Infrastructure and $6.9 million in Corporate. Combined During 2016, we recognized total restructuring and related charges of $53.5 million, of this amount, restructuring charges totaled $30.0 million. Total restructuring-related charges of $7.3 million were recorded in cost of goods sold and $16.2 million in operating expense during 2016. During 2015, we recognized total restructuring and related charges of $58.1 million, of this amount, restructuring charges totaled $42.1 million, of which $1.5 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $8.2 million were recorded in cost of goods sold and $7.8 million in operating expense during 2015. During 2014, we recorded $19.1 million restructuring and related charges, of this amount, restructuring charges totaled $17.8 million, of which $0.2 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $1.2 million were recorded in cost of goods sold and $0.1 million in operating expense during 2014. The restructuring accrual is recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows:
(in thousands) | June 30, 2015 |  | Expense |  | Asset Write-Down |  | Other (2) |  | Translation |  | Cash Expenditures |  | June 30, 2016
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 13,456 |  |  | $ | 17,322 |  |  | $ | — |  |  | $ | (347 | ) |  | $ | (140 | ) |  | $ | (21,202 | ) |  | $ | 9,089 |
Facilities | — |  |  | 330 |  |  | (780 | ) |  | — |  |  | — |  |  | 450 |  |  | — |
Other | 28 |  |  | 297 |  |  | — |  |  | — |  |  | (5 | ) |  | 579 |  |  | 899 |
Total Industrial | $ | 13,484 |  |  | $ | 17,949 |  |  | $ | (780 | ) |  | $ | (347 | ) |  | $ | (145 | ) |  | $ | (20,173 | ) |  | $ | 9,988 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 7,173 |  |  | $ | 7,424 |  |  | $ | — |  |  | $ | (201 | ) |  | $ | (60 | ) |  | $ | (9,035 | ) |  | $ | 5,301 |
Facilities | 131 |  |  | 4,515 |  |  | (3,914 | ) |  | — |  |  | — |  |  | (699 | ) |  | 33 |
Other | — |  |  | 127 |  |  | — |  |  | — |  |  | (2 | ) |  | 256 |  |  | 381 |
Total Infrastructure | 7,304 |  |  | 12,066 |  |  | (3,914 | ) |  | (201 | ) |  | (62 | ) |  | (9,478 | ) |  | 5,715 |
Total | $ | 20,788 |  |  | $ | 30,015 |  |  | $ | (4,694 | ) |  | $ | (548 | ) |  | $ | (207 | ) |  | $ | (29,651 | ) |  | $ | 15,703 |
(2) Special termination benefit charge and settlement charge for one of our U.S.-based benefit pension plans resulting from executive retirement - see Note 13.
(in thousands) | June 30, 2014 |  | Expense |  | Asset Write-Down |  | Other (3) |  | Translation |  | Cash Expenditures |  | June 30, 2015
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 5,815 |  |  | $ | 20,713 |  |  | $ | — |  |  | $ | — |  |  | $ | (328 | ) |  | $ | (12,744 | ) |  | $ | 13,456 |
Facilities | 444 |  |  | 2,277 |  |  | (2,231 | ) |  | — |  |  | (15 | ) |  | (475 | ) |  | — |
Other | 67 |  |  | 77 |  |  | — |  |  | — |  |  | (2 | ) |  | (114 | ) |  | 28 |
Total Industrial | $ | 6,326 |  |  | $ | 23,067 |  |  | $ | (2,231 | ) |  | $ | — |  |  | $ | (345 | ) |  | $ | (13,333 | ) |  | $ | 13,484 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 2,458 |  |  | $ | 14,027 |  |  | $ | — |  |  | $ | (459 | ) |  | $ | (223 | ) |  | $ | (8,630 | ) |  | $ | 7,173 |
Facilities | 190 |  |  | 4,969 |  |  | (3,638 | ) |  | — |  |  | (32 | ) |  | (1,358 | ) |  | 131 |
Other | 28 |  |  | — |  |  | — |  |  | — |  |  | (3 | ) |  | (25 | ) |  | — |
Total Infrastructure | 2,676 |  |  | 18,996 |  |  | (3,638 | ) |  | (459 | ) |  | (258 | ) |  | (10,013 | ) |  | 7,304 |
Total | $ | 9,002 |  |  | $ | 42,063 |  |  | $ | (5,869 | ) |  | $ | (459 | ) |  | $ | (603 | ) |  | $ | (23,346 | ) |  | $ | 20,788 |
(3) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 13. Asset impairment Charges See discussion on goodwill and other intangible asset impairment charges in Note 2. During 2016, we identified specific machinery and equipment that was no longer being utilized in the manufacturing organization of which we disposed by abandonment. As a result of this review, we recorded property, plant, and equipment impairment charges of $5.4 million during 2016, which has been presented in restructuring and asset impairment charges in our consolidated statement of income.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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- References No definition available. + Details
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